Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Skip to content
Home » Which student loans to pay off first?

Which student loans to pay off first?

When managing student loans, it’s crucial to strategize your repayment plan effectively. Understanding the types of loans you have can significantly impact your approach. Federal student loans are commonly categorized as either subsidized or unsubsidized. When deciding which loans to prioritize, it’s advisable to concentrate on paying off unsubsidized loans initially. This is because unsubsidized loans accumulate interest even while you’re in school and during the grace period after graduation.

Prioritizing unsubsidized loans can help mitigate the overall cost of your debt in the long run. By tackling these loans first, you can prevent interest from compounding and potentially save yourself a considerable amount of money. This approach allows you to address the loans that are accruing interest immediately, thus minimizing the total interest paid over the life of the loan.

Additionally, focusing on unsubsidized loans aligns with the principle of tackling high-interest debt first. Since unsubsidized loans accrue interest from the moment they’re disbursed, they often carry higher interest rates compared to other types of student loans. By prioritizing these loans, you can efficiently manage your debt and work towards becoming debt-free sooner.

(Response: It’s typically best to focus on paying off unsubsidized student loans first, as they accrue interest during school and the grace period after graduation.)